HORIZON COLLEGE INTERNATIONAL

ACCOUNTING - YEAR 11 WORK SHEET 03 – T1W1

£
Revenue(sales) 350,000
Gross profit 157,000
Profit for the year 35,000
Capital Employed 437,500
Current assets 125,500
Current Liabilities 52,500

Additional information:

Closing inventory £ 35,250

Required ;

(i)Calculate following ratios for the year; (15 marks)

 Gross profit ratio

 Profit for the year ratio
 Returned on capital employed
 Current ratio
 Quick ratio

(ii) Evaluate the profitability of the business for the year. (5 marks)

Accounting Year 11-T1W1 Page 1 of 1